11. A goal of a good internal control system is to safeguard company assets. B. safeguard the company's liabilities. C. guarantee that no employee theft will ever occur. D. both A and B are correct. E. all of the above are correct. _12. To arrive at net sales, we subtract from gross sales A. sales discounts. B. trade discounts. c. sales returns and allowances. D. both A and C are correct. E. all of the above are correct. 13. Cash equivalents would include A. accounts payable. B. accounts receivable. C. a three-month certificate of deposit (CD). D. IBM stock owned by the firm. E. both B and C are correct. 14. Examples of revenue that should be recognized pro-rata are: A. tuition revenue. B revenue from magazine subscriptions. C. revenue from the sale of season tickets to a series of plays. D. both B and Care correct. E. all of the above are correct. _15. Theft by an employee is often discovered when the employee A. is on a coffee break. B. takes a half-day off to visit the dentist. C. is on medical leave. D. both B and C are correct. 16. It is suspicious when a it will collect a % of receivables that is A. much greater than that of peers that sell to the same group of customers. B. exactly the same % as it was during the prior year. C. both A and B are correct. D. none of the above is correct. 3